Remy Cointreau Trims Tariff Bill and Raises Profit Outlook

French cognac maker Remy Cointreau said the blow from trade levies will be smaller than it feared, citing a July agreement that capped U.S. duties on European wines and spirits at 15%. The company now expects tariffs to shave about €30 million from 2025-26 current operating profit, down from the €45 million it had projected earlier. Within that total, the hit from U.S. tariffs is seen at €20 million, versus the €35 million previously forecast, while the €10 million effect of Chinese levies is unchanged. Because of the lower tariff burden, Remy Cointreau lifted its full-year outlook, predicting a mid-single-digit percentage decline in operating profit instead of the earlier mid- to high-single-digit drop. The revision follows years of sales weakness in the United States and China that had forced multiple guidance cuts. About 70% of the group’s revenue comes from cognac, leaving it more exposed to trade barriers than diversified rivals.